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2019 (3) TMI 254 - AT - CustomsConversion of shipping bills under Drawback Scheme into under Duty Free Import Authorisation (DFIA) Scheme - CBEC Circular 36/2010-Cus dated 23.09.2010 - Held that - Admittedly, at the time of export, the appellant were debarred to file their shipping bills under DFIA Scheme in terms of Paragraph 4 of the Notification No. 31/2013 dated 01.08.2013 - Admittedly, there is no mistake apparent on record, but, the same shall not take away from the right of the appellant. In this case, the conditions for export under DFIA Scheme as well as Duty Drawback Scheme are same, therefore, the appellant has satisfied the decision of the Hon ble Madras High Court in the case of Suzlon Energy Ltd. 2013 (3) TMI 506 - MADRAS HIGH COURT , where it was held that To claim benefit under Drawback EPCG scheme and DEEC scheme, the exporter has to file DEEC declaration to the effect what are the raw materials used in the manufacture of the final product. At the time of examination of the goods materials given in the declaration will be verified. The appellant is entitled for conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme subject to reversal of benefit taken under Duty Drawback Scheme is paid by the appellant alongwith interest - Appeal allowed in part.
Issues:
- Conversion of exports under Duty Drawback Scheme to Duty Free Import Authorisation (DFIA) Scheme. - Applicability of CBEC Circular No. 36/2010 dated 23.09.2010. - Interpretation of Notification No. 31/2013 dated 01.08.2013. - Validity of the application for conversion under Section 149 of the Customs Act, 1962. - Comparison of conditions between DFIA Scheme and Duty Drawback Scheme for conversion of shipping bills. Analysis: 1. Conversion of exports under Duty Drawback Scheme to DFIA Scheme: The appellant exported goods under Duty Drawback Scheme due to restrictions under Notification No. 31/2013 dated 01.08.2013, which was later declared ultra vires by the Punjab and Haryana High Court. The appellant sought conversion to DFIA Scheme, which was initially rejected by the adjudicating authority. The Tribunal held that the appellant is entitled to convert the shipping bills from Duty Drawback Scheme to DFIA Scheme as per the decision of the High Court, subject to the reversal of benefits taken under Duty Drawback Scheme. 2. Applicability of CBEC Circular No. 36/2010 dated 23.09.2010: The appellant argued that the Circular does not bar the conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme and that the time limit specified in the Circular is not applicable. The Tribunal considered this argument and allowed the conversion based on the specific circumstances of the case. 3. Interpretation of Notification No. 31/2013 dated 01.08.2013: The Notification required inputs used in manufacturing export products to be imported under authorization, which led the appellant to export under Duty Drawback Scheme initially. The Tribunal noted that the High Court's decision rendered the appellant eligible to file shipping bills under DFIA Scheme, which was not permitted at the time of export. 4. Validity of the application under Section 149 of the Customs Act, 1962: The respondent contended that the appellant's application under Section 149 of the Customs Act was not applicable as there was no apparent mistake on record. However, the Tribunal found that the appellant's situation, where they were compelled to use Duty Drawback Scheme at the time of export, distinguished this case from the precedent cited by the respondent. 5. Comparison of conditions between DFIA Scheme and Duty Drawback Scheme: The Tribunal compared the conditions for export under DFIA Scheme and Duty Drawback Scheme, noting that they were similar in this case. Citing previous judgments, the Tribunal held that the appellant met the criteria for conversion to DFIA Scheme and ordered the conversion, subject to the appellant paying back benefits received under Duty Drawback Scheme with interest. Therefore, the Tribunal allowed the appeal and disposed of the case in favor of the appellant, permitting the conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme, subject to the specified conditions.
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